Conventional systems for originating and receiving telephone calls, particularly long distance or international telephone calls, typically involve routing through the facilities (e.g., switches) of a "local service provider", i.e., a so-called "local exchange carrier" or LEC in the United States or a PTT in foreign countries. With respect to outgoing calls placed from a subscriber location, the LEC switch serving the subscriber's customer premises equipment (CPE) senses an off-hook condition and extends dial tone. When the dialed digits are received in the LEC switch, any features associated with the originating subscriber, such as speed dialing, are applied to the call, and the call is then routed to the desired destination. If the call is a long distance call that is thereafter routed to a long distance or interexchange carrier (IXC) such as AT&T, then the IXC will pay the LEC for servicing the call, in the form of an "access charge", and the subscriber pays the LEC for the call and for any originating features used.
With respect to incoming calls received at a called party location, a similar condition prevails. Long distance calls destined for a called party are routed by the IXC to the terminating switch operated by the LEC that serves the called party location. Here, any features associated with the called subscriber location, such as call forwarding, distinctive ringing and so on, are applied to the call, and the call is then completed. Here again, the IXC will pay the LEC for servicing the call, in the form of an "access (or egress) charge", and the subscriber will pay the LEC for any terminating vertical services provided.